Suzlon Energy stock soars after FY25 earnings beat: Is the clean energy giant back for good?

Why Did Suzlon Energy Stock Rally After FY25 Results?

On May 29, 2025, Suzlon Energy Limited (NSE: SUZLON) delivered a sharp 11.94% intraday jump, closing at ₹73.23 as investors responded positively to its FY25 audited results. With consolidated revenue hitting ₹10,851 crore and net profit climbing to ₹2,072 crore—its highest in over a decade—the stock reentered radar screens of retail traders and value seekers. The company’s transformation from a debt-laden survivor to a cash-rich clean energy leader has started to show in institutional and forum-level sentiment. The surge follows a strong turnaround theme across India‘s renewable energy landscape, which crossed 50 GW in installed wind capacity in early 2025, with Suzlon remaining a key player. Broader interest in energy transition assets—especially wind turbine manufacturers—is driving momentum as investors reposition portfolios in light of India’s 2030 clean power targets.

Suzlon Energy FY25: Best Financial Year Since FY2015

Suzlon’s FY25 consolidated financials present a compelling growth story. The company posted a 67% year-on-year increase in revenue, reaching ₹10,851 crore compared to ₹6,497 crore in FY24. EBITDA expanded to ₹1,857 crore, marking an 81% rise, while the EBITDA margin improved to 17.1% from 15.8% a year earlier. Net profit for FY25 stood at ₹2,072 crore versus ₹660 crore in FY24, propelled by the recognition of a deferred tax asset worth ₹638 crore. Even excluding the tax gain, Suzlon’s profit before tax rose by 103% to ₹1,447 crore. The company declared this as its best annual performance in the past 10 years, a fact further supported by a record 1,550 MW of wind energy deliveries—more than double the 710 MW shipped in FY24.

Segment-Wise Snapshot: Where the Growth Came From

Suzlon’s Wind Turbine Generator segment remained the core driver, contributing ₹8,481 crore in FY25. Its Operation and Maintenance Services added ₹2,221 crore, maintaining near-flat year-on-year growth, while the Foundry & Forging vertical generated ₹489 crore. The firm order book stood at 5.6 GW as of March 31, 2025, underscoring healthy visibility for FY26 and beyond. Most of the order pipeline is anchored by the S144 turbine—a flagship product line that has gained significant traction in the domestic market due to its efficiency and reliability.

Investor Sentiment: Forum Buzz Meets Institutional Caution

Retail sentiment, which had largely gone quiet after Suzlon’s 2023 dilution events and ESOP exercises, saw a renewed burst. Trading volumes surged on May 29, with delivery percentage touching 41.25%, suggesting real buying rather than speculative churn. ValuePickr, Stocktwits, and Reddit investors flagged Suzlon as a “clean energy comeback play,” while also noting high volatility at 57.5% annualised. Institutional investors remain cautiously optimistic. Suzlon’s standalone balance sheet now shows no long-term debt and a net cash position of ₹1,943 crore, indicating that the earlier refinancing concerns have been addressed. However, the stock’s price-to-earnings ratio of 79.5x may deter conservative institutions awaiting a valuation reset.

Strategic Milestones and Corporate Actions: What Changed in FY25

FY25 marked key structural improvements beyond just numbers. In May 2025, the National Company Law Tribunal approved the amalgamation of Suzlon Global Services Ltd, a wholly-owned subsidiary, into the parent entity. The move aims to simplify group operations and improve efficiency through unified control over maintenance operations. Additionally, Suzlon has transferred its regional project execution arms—Suzlon Southern Projects Ltd and Suzlon Western India Projects Ltd—to step-down subsidiaries. These transfers were completed on May 10, 2025, as part of the company’s internal restructuring designed to streamline regional EPC execution and support margin expansion. The company also issued significant employee stock options in FY25 and exercised multiple tranches at various premiums—ranging from ₹5 to ₹30 per share—indicating employee alignment with long-term value creation.

Deferred Tax Recognition: A Boost or a Mirage?

Suzlon’s sharp rise in net profit is partly attributable to the recognition of ₹638 crore as deferred tax assets, based on future taxable profit forecasts. According to management, this recognition is justified by robust order inflows and consistent operational profitability. However, such tax entries can be non-cash in nature and sometimes temporary if future earnings don’t materialize. Auditors Walker Chandiok & Co LLP issued an unmodified opinion, confirming the legitimacy of the financial treatment and confidence in the accounting judgments. Still, forum users have flagged this boost as a one-time tailwind that should not distract from core operating metrics.

Valuation and Price Action: Is the Stock Overheating?

At ₹73.23, Suzlon is trading at valuations that suggest the market is pricing in aggressive execution and order fulfillment over FY26–FY27. The company’s market capitalization is near ₹99,950 crore, with a trailing EPS of ₹0.92 (after adjusting for one-off tax credits), leading to a valuation multiple of nearly 80x. Technical charts show that the stock broke past the ₹70 resistance for the first time since 2017. The next resistance lies around ₹75–₹78, while strong support has emerged at ₹60–₹62 based on institutional buying in April and May 2025.

From Debt Trap to Cash Surplus

Once seen as a textbook case of infrastructure overreach, Suzlon had entered the bankruptcy watchlist in the early 2010s after piling on foreign debt for global acquisitions. A multi-year debt restructuring, supported by asset sales and promoter re-infusion, gradually brought the company back from the brink. FY25 marks the first year where Suzlon not only turned profitable consistently across all quarters but also reported a cash surplus and zero long-term debt—a symbolic closure of its decade-long turnaround story.

Analyst Commentary and Market Outlook

Though no formal brokerage upgrades have been issued post-results yet, market participants expect coverage reinitiation from domestic firms like Axis Securities and ICICI Direct. Analysts believe Suzlon’s future re-rating may hinge on timely execution of its 5.6 GW order book, conversion of letters of intent into firm contracts, operating leverage gains from regional subsidiaries, policy incentives under India’s Renewable Energy Mission 2030, and stability in raw material prices such as steel and copper. Given the current visibility, most retail-focused analysts expect Suzlon to maintain a 15–18% EBITDA margin through FY26, with potential upward surprises if the S144 turbine sees wider international traction.

What to Watch in FY26: Triggers for Investors

The coming quarters will be crucial. Investors should closely monitor Q1FY26 order execution updates, tender wins in hybrid wind-solar auctions, institutional shareholding changes in June 2025 filings, and the response to pending SEBI adjudication on historical disclosure lapses. In addition, the company’s ability to control equity dilution amid rising stock price may determine whether EPS growth can be sustained organically.

Suzlon’s Second Wind Looks Real, But Not Risk-Free

Suzlon Energy‘s FY25 results underscore a genuine operational and financial turnaround. However, the valuation run-up means future performance needs to exceed even elevated expectations. Retail and forum investors may stay invested with a medium-term horizon, but sharp volatility should be expected given past patterns and the momentum-fueled nature of the recent breakout.